Net sales for the 13 weeks ended Feb. 26, 2012 grew 13 percent to $4.12
billion. Price realization and mix contributed 3 points of net sales
growth, and pound volume contributed 10 points of net sales growth,
including 13 points of pound volume growth from the Yoplait acquisition.
Foreign exchange did not have a material effect on our sales growth rate
in the quarter. Gross margin as a percent of net sales was below
year-ago levels due to higher input costs and the change in business mix
to include the Yoplait acquisition. Advertising and media expense was 8
percent higher in the period. Segment operating profit rose 1 percent to
$675 million. Third-quarter net earnings attributable to General Mills
totaled $392 million and diluted earnings per share totaled 58 cents.
Adjusted diluted earnings per share, which excludes certain items
affecting comparability of results year to year, totaled 55 cents for
the third quarter of 2012 compared to 56 cents a year ago. (Please see
Note 7 to the consolidated financial statements below for a
reconciliation of this non-GAAP measure.)

Chairman and Chief Executive Officer Ken Powell said, “Our third-quarter
results reflect strong worldwide sales growth for our business, but the
10-11 percent input cost inflation we’re experiencing this year
pressured our margins. In the fourth quarter, we expect to generate
continued good sales momentum and we anticipate that gross margin
contraction will ease somewhat. This should result in renewed earnings
growth as we wrap up 2012 and move into the new fiscal year.”

Bakeries & Foodservice Segment ResultsThird-quarter
net sales for the Bakeries and Foodservice segment grew 6 percent to
$469 million. Price realization and mix contributed 6 points of net
sales growth, while pound volume did not have a material effect on net
sales growth in the quarter. Customer channel performance was strong,
with net sales to convenience stores up 8 percent, sales to foodservice
distributors up 14 percent, and sales to bakeries and national
restaurant accounts up 1 percent. Segment operating profit of $66
million was generally in line with year-ago levels despite significantly
higher input costs and comparison to year-ago results that included
strong grain merchandising earnings.

Through the first nine months of fiscal 2012, Bakeries and Foodservice
net sales grew 10 percent to $1.47 billion. Pound volume held generally
even with year-ago levels, while price realization and mix contributed
10 points of net sales growth. Segment operating profit of $206 million
was 5 percent below year-ago results that included strong levels of
grain merchandising earnings.

Corporate ItemsUnallocated corporate
items totaled $6 million net expense in the third quarter of 2012, down
from $28 million net expense in last year’s third quarter. Excluding
mark-to-market effects in both years, unallocated corporate items
totaled $53 million net expense this year compared to $61 million net
expense a year ago. This year’s third quarter included $4 million of
Yoplait integration costs. 2011 third quarter expense included an $11
million charge to increase an environmental liability.

Net interest expense of $96 million was up 13 percent, reflecting higher
debt levels following the Yoplait acquisition. The effective tax rate
for the third quarter was 32.7 percent. Excluding certain items
affecting comparability, the effective tax rate was 32.0 percent in this
year’s third quarter and 31.6 percent a year ago. (Please see Note 7
below for a reconciliation of this non-GAAP measure.)

Cash Flow ItemsCash provided by
operating activities totaled $1.66 billion in the first nine months of
2012, an increase from last year’s results primarily due to targeted
reductions of working capital in the period. Capital investments totaled
$424 million in the first nine months of 2012. Dividends paid rose to
$600 million, reflecting the increase in the dividend rate
year-over-year. During the first nine months, General Mills repurchased
approximately 8 million shares of common stock, including 3 million
shares purchased in the third quarter.

OutlookGeneral Mills reaffirmed its
fiscal 2012 adjusted diluted EPS guidance of $2.53 - $2.55. This
guidance excludes mark-to-market valuation effects, and integration
costs for the Yoplait acquisition. “Fiscal 2012 has represented a
challenging operating environment, with the highest level of commodity
inflation that we’ve seen in 30 years,” Powell said. “But sales of our
leading food brands remain strong in markets around the world, putting
General Mills on pace to achieve record-level net sales and adjusted
diluted earnings per share.”

General Mills will hold a briefing for investors today, March 21, 2012,
beginning at 8:30 a.m. Eastern time. You may access the web cast from
General Mills’ internet home page: generalmills.com.

Earnings per share excluding certain items, total company segment
operating profit, international sales excluding foreign currency
translation effects, and effective tax rate excluding certain items are
each non-GAAP measures. Reconciliations of these measures to their
relevant GAAP measures appear in the financial schedules and Note 7 to
the attached Consolidated Financial Statements.

This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 that are
based on our current expectations and assumptions. These forward-looking
statements, including the statements under the caption “ Outlook,” and
statements made by Mr. Powell, are subject to certain risks and
uncertainties that could cause actual results to differ materially from
the potential results discussed in the forward-looking statements. In
particular, our predictions about future net sales and earnings could be
affected by a variety of factors, including: competitive dynamics in the
consumer foods industry and the markets for our products, including new
product introductions, advertising activities, pricing actions, and
promotional activities of our competitors; economic conditions,
including changes in inflation rates, interest rates, tax rates, or the
availability of capital; product development and innovation; consumer
acceptance of new products and product improvements; consumer reaction
to pricing actions and changes in promotion levels; acquisitions or
dispositions of businesses or assets; changes in capital structure;
changes in laws and regulations, including labeling and advertising
regulations; impairments in the carrying value of goodwill, other
intangible assets, or other long-lived assets, or changes in the useful
lives of other intangible assets; changes in accounting standards and
the impact of significant accounting estimates; product quality and
safety issues, including recalls and product liability; changes in
consumer demand for our products; effectiveness of advertising,
marketing, and promotional programs; changes in consumer behavior,
trends, and preferences, including weight loss trends; consumer
perception of health-related issues, including obesity; consolidation in
the retail environment; changes in purchasing and inventory levels of
significant customers; fluctuations in the cost and availability of
supply chain resources, including raw materials, packaging, and energy;
disruptions or inefficiencies in the supply chain; volatility in the
market value of derivatives used to manage price risk for certain
commodities; benefit plan expenses due to changes in plan asset values
and discount rates used to determine plan liabilities; failure of our
information technology systems; foreign economic conditions, including
currency rate fluctuations; and political unrest in foreign markets and
economic uncertainty due to terrorism or war. The company undertakes no
obligation to publicly revise any forward-looking statement to reflect
any future events or circumstances.

Consolidated Statements of Earnings and Supplementary Information

GENERAL MILLS, INC. AND SUBSIDIARIES

(Unaudited) (In Millions, Except per Share Data)

Quarter Ended

Nine-Month Period Ended

Feb. 26,

Feb. 27,

Feb. 26,

Feb. 27,

2012

2011

% Change

2012

2011

% Change

Net sales

$

4,120.1

$

3,646.2

13.0

%

$

12,591.5

$

11,245.9

12.0

%

Cost of sales

2,612.7

2,215.4

17.9

%

8,042.9

6,656.8

20.8

%

Selling, general, and administrative expenses

838.7

790.2

6.1

%

2,523.3

2,363.2

6.8

%

Divestiture (gain)

-

(14.3

)

NM

-

(14.3

)

NM

Restructuring, impairment, and other exit costs

0.1

0.1

NM

0.9

2.1

NM

Operating profit

668.6

654.8

2.1

%

2,024.4

2,238.1

(9.5)

%

Interest, net

96.0

85.0

12.9

%

268.6

256.9

4.6

%

Earnings before income taxes and after-tax earnings from joint
ventures

572.6

569.8

0.5

%

1,755.8

1,981.2

(11.4)

%

Income taxes

187.3

181.7

3.1

%

574.2

565.4

1.6

%

After-tax earnings from joint ventures

15.5

5.4

187.0

%

72.7

66.6

9.2

%

Net earnings, including earnings attributable to redeemable and
noncontrolling interests

400.8

393.5

1.9

%

1,254.3

1,482.4

(15.4)

%

Net earnings attributable to redeemable and noncontrolling
interests

9.3

1.4

NM

12.4

4.3

NM

Net earnings attributable to General Mills (a)

$

391.5

$

392.1

(0.2)

%

$

1,241.9

$

1,478.1

(16.0)

%

Earnings per share - basic

$

0.61

$

0.61

-

%

$

1.92

$

2.30

(16.5)

%

Earnings per share - diluted

$

0.58

$

0.59

(1.7)

%

$

1.86

$

2.22

(16.2)

%

Dividends per share

$

0.305

$

0.280

8.9

%

$

0.915

$

0.840

8.9

%

Quarter Ended

Nine-Month Period Ended

Feb. 26,

Feb. 27,

Basis Pt

Feb. 26,

Feb. 27,

Basis Pt

Comparisons as a % of net sales:

2012

2011

Change

2012

2011

Change

Gross margin

36.6

%

39.2

%

(260)

36.1

%

40.8

%

(470)

Selling, general, and administrative expenses

20.4

%

21.7

%

(130)

20.0

%

21.0

%

(100)

Operating profit

16.2

%

17.9

%

(170)

16.1

%

19.9

%

(380)

Net earnings attributable to General Mills

9.5

%

10.8

%

(130)

9.9

%

13.1

%

(320)

Quarter Ended

Nine-Month Period Ended

Comparisons as a % of net sales excluding

Feb. 26,

Feb. 27,

Basis Pt

Feb. 26,

Feb. 27,

Basis Pt

certain items affecting comparability (b):

2012

2011

Change

2012

2011

Change

Gross margin

35.5

%

38.3

%

(280)

36.8

%

39.6

%

(280)

Operating profit

15.2

%

17.0

%

(180)

16.9

%

18.7

%

(180)

Net earnings attributable to General Mills

8.9

%

10.2

%

(130)

10.3

%

11.6

%

(130)

(a) See Note 2.

(b) See Note 7 for a reconciliation of this measure not defined by
generally accepted accounting principles (GAAP).

See accompanying notes to consolidated financial statements.

Operating Segment Results and Supplementary Information

GENERAL MILLS, INC. AND SUBSIDIARIES

(Unaudited) (In Millions)

Quarter Ended

Nine-Month Period Ended

Feb. 26,

Feb. 27,

Feb. 26,

Feb. 27,

2012

2011

% Change

2012

2011

% Change

Net sales:

U.S. Retail

$

2,609.4

$

2,513.7

3.8

%

$

8,058.0

$

7,810.4

3.2

%

International

1,041.3

688.4

51.3

%

3,060.9

2,097.0

46.0

%

Bakeries and Foodservice

469.4

444.1

5.7

%

1,472.6

1,338.5

10.0

%

Total

$

4,120.1

$

3,646.2

13.0

%

$

12,591.5

$

11,245.9

12.0

%

Operating profit:

U.S. Retail

$

512.5

$

533.0

(3.8)

%

$

1,759.1

$

1,835.0

(4.1)

%

International

96.0

68.8

39.5

%

310.2

219.5

41.3

%

Bakeries and Foodservice

66.5

66.7

(0.3)

%

205.7

216.3

(4.9)

%

Total segment operating profit

675.0

668.5

1.0

%

2,275.0

2,270.8

0.2

%

Unallocated corporate items

6.3

27.9

(77.4)

%

249.7

44.9

456.1

%

Divestiture (gain)

-

(14.3

)

NM

-

(14.3

)

NM

Restructuring, impairment, and

other exit costs

0.1

0.1

NM

0.9

2.1

NM

Operating profit

$

668.6

$

654.8

2.1

%

$

2,024.4

$

2,238.1

(9.5)

%

Quarter Ended

Nine-Month Period Ended

Feb. 26,

Feb. 27,

Basis Pt

Feb. 26,

Feb. 27,

Basis Pt

2012

2011

Change

2012

2011

Change

Segment operating profit as a

% of net sales:

U.S. Retail

19.6

%

21.2

%

(160)

21.8

%

23.5

%

(170)

International

9.2

%

10.0

%

(80)

10.1

%

10.5

%

(40)

Bakeries and Foodservice

14.2

%

15.0

%

(80)

14.0

%

16.2

%

(220)

Total segment operating profit

16.4

%

18.3

%

(190)

18.1

%

20.2

%

(210)

See accompanying notes to consolidated financial statements.

Consolidated Balance Sheets

GENERAL MILLS, INC. AND SUBSIDIARIES

(In Millions, Except Par Value)

Feb. 26,

Feb. 27,

May 29,

2012

2011

2011

(Unaudited)

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

485.3

$

540.3

$

619.6

Receivables

1,437.1

1,185.9

1,162.3

Inventories

1,528.0

1,668.1

1,609.3

Deferred income taxes

27.8

30.9

27.3

Prepaid expenses and other current assets

358.1

417.7

483.5

Total current assets

3,836.3

3,842.9

3,902.0

Land, buildings, and equipment

3,549.9

3,180.4

3,345.9

Goodwill

8,205.0

6,702.9

6,750.8

Other intangible assets

4,728.4

3,802.8

3,813.3

Other assets

1,119.4

752.5

862.5

Total assets

$

21,439.0

$

18,281.5

$

18,674.5

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$

1,011.9

$

830.1

$

995.1

Current portion of long-term debt

749.1

1,031.2

1,031.3

Notes payable

690.8

974.5

311.3

Other current liabilities

1,397.2

1,675.5

1,321.5

Total current liabilities

3,849.0

4,511.3

3,659.2

Long-term debt

6,194.8

4,843.1

5,542.5

Deferred income taxes

1,367.6

988.6

1,127.4

Other liabilities

1,774.8

1,826.3

1,733.2

Total liabilities

13,186.2

12,169.3

12,062.3

Redeemable interest

848.4

-

-

Stockholders' equity:

Common stock, 754.6 shares issued, $0.10 par value

75.5

75.5

75.5

Additional paid-in capital

1,337.7

1,300.7

1,319.8

Retained earnings

9,833.7

9,053.0

9,191.3

Common stock in treasury, at cost, shares of 107.4, 116.3 and 109.8

(3,213.4

)

(3,400.8

)

(3,210.3

)

Accumulated other comprehensive loss

(1,111.9

)

(1,162.2

)

(1,010.8

)

Total stockholders' equity

6,921.6

5,866.2

6,365.5

Noncontrolling interests

482.8

246.0

246.7

Total equity

7,404.4

6,112.2

6,612.2

Total liabilities and equity

$

21,439.0

$

18,281.5

$

18,674.5

See accompanying notes to consolidated financial statements.

Consolidated Statements of Cash Flows

GENERAL MILLS, INC. AND SUBSIDIARIES

(Unaudited) (In Millions)

Nine-Month Period Ended

Feb. 26, 2012

Feb. 27, 2011

Cash Flows - Operating Activities

Net earnings, including earnings attributable to redeemable

and noncontrolling interests

$

1,254.3

$

1,482.4

Adjustments to reconcile net earnings to net cash

provided by operating activities:

Depreciation and amortization

398.8

354.5

After-tax earnings from joint ventures

(72.7

)

(66.6

)

Stock-based compensation

88.4

81.4

Deferred income taxes

49.9

105.8

Tax benefit on exercised options

(58.7

)

(75.1

)

Distributions of earnings from joint ventures

43.2

31.4

Pension and other postretirement benefit plan contributions

(15.5

)

(11.3

)

Pension and other postretirement benefit plan expense

58.4

55.1

Divestiture (gain)

-

(14.3

)

Restructuring, impairment, and other exit costs (income)

(2.6

)

(2.5

)

Changes in current assets and liabilities,

excluding the effects of acquisitions

66.7

(612.4

)

Other, net

(153.0

)

(80.3

)

Net cash provided by operating activities

1,657.2

1,248.1

Cash Flows - Investing Activities

Purchases of land, buildings, and equipment

(423.9

)

(423.4

)

Acquisitions, net of cash acquired

(900.1

)

(84.8

)

Investments in affiliates, net

(22.1

)

(1.8

)

Proceeds from disposal of land, buildings, and equipment

1.4

3.5

Proceeds from divestiture of product line

-

24.9

Exchangeable note

(131.6

)

-

Other, net

6.6

14.7

Net cash used by investing activities

(1,469.7

)

(466.9

)

Cash Flows - Financing Activities

Change in notes payable

384.9

(78.4

)

Issuance of long-term debt

1,390.5

500.0

Payment of long-term debt

(1,439.3

)

(5.5

)

Proceeds from common stock issued on exercised options

208.5

256.3

Tax benefit on exercised options

58.7

75.1

Purchases of common stock for treasury

(312.5

)

(1,163.5

)

Dividends paid

(599.5

)

(547.5

)

Other, net

(8.4

)

(8.5

)

Net cash used by financing activities

(317.1

)

(972.0

)

Effect of exchange rate changes on cash and cash equivalents

(4.7

)

57.9

Decrease in cash and cash equivalents

(134.3

)

(132.9

)

Cash and cash equivalents - beginning of year

619.6

673.2

Cash and cash equivalents - end of period

$

485.3

$

540.3

Cash Flow from Changes in Current Assets and Liabilities,

excluding the effects of acquisitions:

Receivables

$

(115.0

)

$

(110.3

)

Inventories

111.8

(304.6

)

Prepaid expenses and other current assets

146.4

(33.0

)

Accounts payable

(76.8

)

4.1

Other current liabilities

0.3

(168.6

)

Changes in current assets and liabilities

$

66.7

$

(612.4

)

See accompanying notes to consolidated financial statements.

GENERAL MILLS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(1)

The accompanying Consolidated Financial Statements of General Mills,
Inc. (we, us, our, General Mills, or the Company) have been prepared
in accordance with accounting principles generally accepted in the
United States for annual and interim financial information. In the
opinion of management, all adjustments considered necessary for a
fair presentation have been included and are of a normal recurring
nature.

(2)

We use captions in our Consolidated Financial Statements as required
by guidance on noncontrolling interests, including “Net earnings
attributable to General Mills,” which we have shortened to “Net
earnings” in this release.

(3)

During the first quarter of fiscal 2012, we acquired a 51 percent
controlling interest in Yoplait S.A.S. and a 50 percent interest in
Yoplait Marques S.A.S. from PAI Partners and Sodiaal for an
aggregate purchase price of $1.2 billion. We consolidated both
entities into our consolidated balance sheets and recorded goodwill
of $1.5 billion. During the second and third quarters of fiscal
2012, we recorded adjustments to certain purchase accounting assets
and liabilities that resulted in a $3 million increase to goodwill.
Indefinite lived intangible assets acquired primarily include brands
of $437 million. Finite lived intangible assets acquired primarily
include franchise agreements of $440 million and customer
relationships of $131 million. The pro forma effects of this
acquisition were not material.

On the acquisition date, we recorded the $264 million fair value
of Sodiaal’s 50 percent interest in Yoplait Marques S.A.S. as a
noncontrolling interest on our consolidated balance sheets. On the
acquisition date, we also recorded the $904 million fair value of
Sodiaal’s 49 percent interest in Yoplait S.A.S. as a redeemable
interest on our consolidated balance sheets. These
euro-denominated interests are reported in U.S. dollars on our
consolidated balance sheets. Sodiaal has the ability to put a
limited portion of its redeemable interest to us once per year at
fair value up to a maximum of 9 years. We adjust the value of the
redeemable interest through additional paid-in capital on our
consolidated balance sheets quarterly to the redeemable interest’s
redemption value. As of February 26, 2012, the redemption value of
the redeemable interest was $848 million.

(4)

For the third quarter of fiscal 2012, unallocated corporate expenses
totaled $6 million compared to $28 million in the same period last
year. We recorded a $46 million net decrease in expense related to
the mark-to-market valuations of certain commodity positions and
grain inventories in the third quarter of fiscal 2012, compared to a
$33 million net decrease in expense in the third quarter of fiscal
2011. In the third quarter of fiscal 2011, we recorded an $11
million charge to increase an environmental liability related to an
active cleanup site in Moonachie, New Jersey.

For the nine-month period ended February 26, 2012, unallocated
corporate expenses totaled $250 million compared to $45 million in
the same period last year. We recorded an $86 million net increase
in expense related to the mark-to-market valuations of certain
commodity positions and grain inventories in the nine-month period
ended February 26, 2012, compared to a $133 million net decrease
in expense in the nine-month period ended February 27, 2011. In
the third quarter of fiscal 2011, we recorded an $11 million
charge to increase an environmental liability related to an active
cleanup site in Moonachie, New Jersey.

(5)

Basic and diluted earnings per share (EPS) were calculated as
follows:

In February 2012, we fully repaid the $1.0 billion aggregate
principal amount of our 6.0 percent notes. In November 2011, we
issued $1.0 billion aggregate principal amount of 3.15 percent notes
due December 15, 2021. The net proceeds were used to repay a portion
of our notes due February 15, 2012, reduce our commercial paper
borrowings, and for general corporate purposes. Interest on these
notes is payable semi-annually in arrears. These notes may be
redeemed at our option at any time prior to September 15, 2021 for a
specified make whole amount and any time on or after that date at
par plus accrued and unpaid interest to the redemption date. These
notes are senior unsecured, unsubordinated obligations that include
a change of control repurchase provision.

(7)

We have included five measures in this release that are not defined
by generally accepted accounting principles (GAAP): (1) diluted
earnings per share excluding mark-to-market valuation of certain
commodity positions and grain inventories (“mark-to-market
effects”), integration costs resulting from the acquisitions of
Yoplait S.A.S. and Yoplait Marques S.A.S. (“acquisition integration
costs”), and income tax effects from changes in uncertain tax items
(“uncertain tax items”) (collectively, these three items are
referred to as “certain items affecting comparability” in this
footnote), (2) earnings comparisons as a percent of net sales
excluding certain items affecting comparability, (3) total segment
operating profit, (4) net sales growth rates for our International
segment in total and by region excluding the impact of changes in
foreign currency exchange, and (5) effective income tax rates
excluding certain items affecting comparability. We believe that
these measures provide useful supplemental information to assess our
operating performance. These measures are reconciled below to the
measures as reported in accordance with GAAP, and should be viewed
in addition to, and not in lieu of, our diluted earnings per share
and operating performance measures as calculated in accordance with
GAAP.

Diluted EPS excluding certain items affecting comparability follows:

Nine-Month

Quarter Ended

Period Ended

Feb. 26,

Feb. 27,

Feb. 26,

Feb. 27,

Per Share Data

2012

2011

2012

2011

Diluted earnings per share, as reported

$

0.58

$

0.59

$

1.86

$

2.22

Mark-to-market effects (a)

(0.04

)

(0.03

)

0.09

(0.13

)

Acquisition integration costs (b)

0.01

-

0.01

-

Uncertain tax items (c)

-

-

-

(0.13

)

Diluted earnings per share, excluding

certain items affecting comparability

$

0.55

$

0.56

$

1.96

$

1.96

(a)

See Note 4.

(b)

Integration costs resulting from the acquisitions of Yoplait S.A.S.
and Yoplait Marques S.A.S.

A reconciliation of total segment operating profit to the relevant GAAP
measure, operating profit, is included in the Statements of Operating
Segment Results.

The reconciliation of International segment and region net sales growth
rates as reported to growth rates excluding the impact of foreign
currency exchange below demonstrates the effect of foreign currency
exchange rate fluctuations from year to year. To present this
information, current period results for entities reporting in currencies
other than United States dollars are converted into United States
dollars at the average exchange rates in effect during the corresponding
period of the prior fiscal year, rather than the actual average exchange
rates in effect during the current fiscal year. Therefore, the foreign
currency impact is equal to current year results in local currencies
multiplied by the change in the average foreign currency exchange rate
between the current fiscal period and the corresponding period of the
prior fiscal year.

Quarter Ended Feb. 26, 2012

Percentage Change

Impact of Foreign

Percentage Change in Net

in Net Sales

Currency

Sales on Constant

as Reported

Exchange

Currency Basis

Europe

121

%

(5

) pts

126

%

Canada

35

(2

)

37

Asia/Pacific

17

2

15

Latin America

8

(4

)

12

Total International

51

%

(2

) pts

53

%

Nine-Month Period Ended Feb. 26, 2012

Percentage Change

Impact of Foreign

Percentage Change in Net

in Net Sales

Currency

Sales on Constant

as Reported

Exchange

Currency Basis

Europe

99

%

4

pts

95

%

Canada

30

2

28

Asia/Pacific

21

6

15

Latin America

11

(2

)

13

Total International

46

%

3

pts

43

%

A reconciliation of the effective income tax rate as reported to the
effective income tax rate excluding certain items affecting
comparability follows:

Quarter Ended

Nine-Month Period Ended

Feb. 26, 2012

Feb. 27, 2011

Feb. 26, 2012

Feb. 27, 2011

Pretax

Income

Pretax

Income

Pretax

Income

Pretax

Income

In Millions

Earnings (a)

Taxes

Earnings (a)

Taxes

Earnings (a)

Taxes

Earnings (a)

Taxes

As reported

$

572.6

$

187.3

$

569.8

$

181.7

$

1,755.8

$

574.2

$

1,981.2

$

565.4

Mark-to-market effects (b)

(46.4)

(17.2)

(33.4)

(12.4)

85.7

31.7

(133.3)

(49.3)

Acquisition integration costs (c)

3.7

(0.4)

-

-

7.8

0.6

-

-

Uncertain tax items (d)

-

-

-

-

-

-

-

88.9

As adjusted

$

529.9

$

169.7

$

536.4

$

169.3

$

1,849.3

$

606.5

$

1,847.9

$

605.0

Effective tax rate:

As reported

32.7%

31.9%

32.7

%

28.5%

As adjusted

32.0%

31.6%

32.8

%

32.7%

(a)

Earnings before income taxes and after-tax earnings from joint
ventures.

(b)

See Note 4.

(c)

Integration costs resulting from the acquisitions of Yoplait S.A.S.
and Yoplait Marques S.A.S.